The present invention relates to a system and method for distributing benefits, and more specifically to an automated system and method utilizing smart cards for electronically distributing benefits to patrons.
Purchase of mass transit fares has become more convenient with the implementation of fare cards that utilize an electronic chip to store value for credit/debit payment. Rather than fumble for bills and coins, the patron may simply touch the fare card to a fare gate reader. Reusable fare cards with read/write capability allow patrons to add time or value to payment-type fare cards, thus avoiding the inconvenience of having to carry currency, or, in the case of mass transit, exact change, for each transit use.
Metropolitan transit authorities continue to improve their services to the public and private sector. Several transit authorities in conjunction with customers such as government agencies, welfare agencies, educational institutions, and private businesses offer transit benefits programs to patrons such as employees, students and welfare recipients. Although transit benefits programs are popular, current procedures are burdensome and largely unfunded within these organizations. Each year a transit authority must deliver millions of pieces of fare media to its customers, i.e. the agencies and institutions. Periodic delivery of the fare media requires use of an armored cars since the fare media has monetary value. Typical fare media utilized for transit benefits include paper cards with magnetic strips that function solely as a value-based card. The customers, in turn, distribute the fare cards to the patrons as either direct benefits or pre-tax benefits under certain tax benefits.
The currently available fare cards are inconvenient for the patrons. Because the cards are typically issued as value-based cards, the patron cannot change the card to another card type without returning the card to a point of issue (“POI”) device that is typically located at the transit authority. This requirement limits the patron's flexibility in receiving the best transit value for the benefit. Further, when a patron is due a refund or an adjustment, current procedures are manual and require the patron to restore value from a transit authority-issued fare card. As these benefits programs increase in popularity, the administrative burden and patron inconvenience will increase. Thus, there remains a need for a convenient and cost effective means to provide, to distribute, and to add value to benefit credits for use in various applications including mass transit systems.